Hong Kong to name ex-KPMG China head Carlson Tong to chair stock exchange

By Kiuyan Wong

The Hong Kong government plans to name Carlson Tong, the former chairman of KPMG China, to preside over the city’s stock exchange. 
 

Tong is expected to take over as the next chairman of the Hong Kong Exchanges & Clearing Ltd. after April 24, according to people familiar with the matter. The city’s leader John Lee will formally make the appointment as mandated by the local securities law, the people said. The government owns about 5.9% of the stock exchange and appoints half of the board, including Tong who has been a director since 2023. 

Along with new HKEX Chief Executive Officer Bonnie Chan, the duo is expected to revive the exchange after a steep drop in initial public offerings and a slump in stock-trading volumes. Many foreign investors have cut their holdings of Chinese companies with stocks listed in Hong Kong, amid a downturn in China’s economy and rising geopolitical tensions. Last month, HKEX reported a 13% decline in fourth-quarter profit to HK$2.6 billion ($332 million).

Laura Cha, the incumbent chairman, will step down after the annual general assembly this year on April 24 after fulfilling the six-year term.

At a press briefing on Friday, Chan said many issuers are looking for the best timing right now. The bourse has received about 30 new listing applications and some 40 renewed applications this year.  

Tong and a spokesperson for HKEX declined to comment. Spokespeople for the government’s Chief Executive Office and the Financial Secretary Office were not immediately available for comment. Reuters reported the news earlier. 

Tong has a history of leading difficult projects. Most recently he was tasked with heading an expert group to suggest ways to boost stock market liquidity, resulting in the city eventually lowering the stock stamp duty. 

During his six-year tenure as chairman of the Hong Kong Securities and Futures Commission, Tong helped broker a landmark trading link known as Stock Connect, which allows mainland China investors to access certain Hong Kong stocks and vice versa. 

He was also the government observer for Cathay Pacific Airways Ltd. when the carrier ran into financial troubles and needed public funding.

A father of three, Tong once led the English Schools Foundation, the city’s international school chain, as well as the Hong Kong Sports Institute. He will remain an independent director at lender Standard Chartered Plc until May. 

Management Reshuffle

Tong’s appointment would come alongside a larger reshuffle at the exchange. Bonnie Chan, who stepped into the top job at the exchange on March 1, is taking direct control of more corporate functions, including the division that deals with mainland China, corporate communications and human resources. She is HKEX’s first female CEO. 

Wilfred Yiu, the deputy CEO and co-chief operating officer, was stripped of the operations division that he led for 16 months, according to a new organization structure chart on the exchange’s website. The operations group includes trading, market surveillance and monitoring, as well as clearing and depository services.

Yiu, a former Goldman Sachs Group Inc. banker who was once seen as a potential successor to former HKEX boss Nicolas Aguzin, has a new mandate to oversee information technology only with CEO Chan, and will oversee the markets division with Glenda So.

The operations division now reports to Vanessa Lau, HKEX’s chief financial officer and co-chief operating officer. 

Chan will also directly oversee listings, risk management and compliance, along with the commodities group that includes the London Metal Exchange and LME Clear. She previously worked as a lawyer, advising on initial public offerings of Chinese companies, as well as an equity capital markets banker.

Her basic salary as CEO is HK$10 million per year, the same as her predecessor Aguzin, before bonuses and share awards.